Foreign Exchange Liberalization and Its Implications: The case of the Korean Won

Kyungsoo Kim and Chi-Young Song

Chapter 4 in Currency Internationalization: Global Experiences and Implications for the Renminbi, 2010, pp 78-111 from Palgrave Macmillan

Abstract: Abstract After the East Asian financial crisis of 1997–8, the South Korean government enthusiastically pursued capital account liberalization. In April 1999, the bona fide principle of foreign exchange transactions was abolished. Most regulations on capital account transactions by domestic firms were lifted, such that corporations and financial institutions are now able to borrow overseas and issue short-term foreign currency-denominated bonds. Further, non-residents are allowed to make deposits and open trust accounts denominated in Korean won (KRW). In January 2001, over-the-counter (OTC) securities transactions between residents and non-residents were liberalized, and multi-netting between a corporate headquarters and its branches was allowed. More details are summarized in Appendix 2.

Keywords: Foreign Exchange; Foreign Exchange Market; Swap Rate; Domestic Bank; Treasury Bond (search for similar items in EconPapers)
Date: 2010
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DOI: 10.1057/9780230245785_4

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